This wedding season, gift a secured financial future

Written on Friday, December 18, 2015By Kumar Pushpraj

Every year during wedding season, we struggle while deciding a suitable gift for our loved ones. We settle for things like home and kitchen appliances or gadgets or may be cash. While money could be used or saved for future use, physical items almost always depreciate in their value. This season you can put an end to those not so useful things and instead gift a mutual fund, a term plan or an insurance cover to financially secure the future of newly wedded couple.

This may sound a bit unconventional but when you are at a stage where you have new responsibilities lined up, term plan is the best gift. Let’s say one of your relatives aged 30 is getting married next month, go ahead and gift him a term plan of 1 Crore. Now let’s see how much it costs. The cover of 1 Crore for 30 years will cost approximately 10,000 to 11,000 annually. Pay for the first premium and ask them to get it renewed every year. Similarly, you can gift Mutual Fund SIP or a health insurance plan. If you are willing to handle the complete burden you can opt for single premiums or you can choose for monthly premiums to avoid burden.

Gifting a SIP will not only ensure a disciplined saving pattern but also will add a life time sentimental value. Let’s have a look at benefits of Mutual Fund SIP and also why you should be gifting a term plan.

Not only in case of marriages, it can be used as a gifting option on other occasions as well. The trend is picking up among people, and more so among the grandparents who are looking to gift something to their grandchildren, the value of which the younger lot could realize in future. People are realizing that if they gift an investment product to a child who has long years in front of him, compounding will make the value of that gift multiple times higher when he needs it in future.